A Stock Has a Standard Deviation of 21

question 39

Multiple Choice

A stock has a standard deviation of 21.0 percent and a covariance with the market of .0110.The market has a standard deviation of 12.0 percent.What is the beta of this stock?

• A) 0.294
• B) 0.572
• C) 0.764
• D) 0.973
• E) 1.075

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Definitions:

International Trade

The exchange of goods and services across international borders or territories, which allows countries to expand their markets for both goods and services that otherwise may not have been available domestically.

Import Restrictions

Government-imposed limits or tariffs on the number or value of goods that can be imported into a country, typically to protect domestic industries.

Purchasing Power

The worth of a currency depicted by the quantity of goods or services that can be purchased with one unit of the currency.

Textile Manufacturers

Companies and businesses involved in the production of fibers, yarns, and fabrics, or the conversion of these materials into various textile products.